DETROIT (Reuters) - The U.S. Bankruptcy Court on Wednesday granted auto parts maker Delphi Corp (DPHIQ.PK: Quote, Profile, Research) more time to complete its reorganization plan and approved a revised and extended debtor-in-possession financing package.

Delphi had prepared for the final stages of exiting court protection in early April when an investor group led by Appaloosa Management LP pulled out of a $2.55 billion equity plan, forcing the parts maker to rewrite its financing plans.

The court on Wednesday extended Delphi's right to file a reorganization plan without outside interference through August, giving it time to work out alternate financing. It also approved $4.1 billion of debtor-in-possession financing that expires Dec. 31, replacing $4.5 billion of loans.

Delphi Chairman Steve Miller said in mid-April it may take months to complete the reorganization after the Appaloosa-led group pulled out of the equity plan. Appaloosa has said it remains open to participating in an alternate way.

Delphi has formed a litigation committee to consider possible legal remedies in response to the group's decision.

General Motors Corp (GM.N: Quote, Profile, Research), Delphi's former parent and still the supplier's biggest customer, on Wednesday reported taking an additional $731 million charge for Delphi-related issues in the first quarter.

That charge, which mainly resulted from the uncertain nature and timing of GM recoveries, brought the automaker's Delphi-related charges to a total of $8.3 billion.

GM also has agreed to advance Delphi $650 million in 2008 in anticipation of settlement agreements between the companies that would have been paid to the supplier had Delphi emerged from court protection as expected in April.

The automaker agreed at the time of its spin-off of Delphi in 1999 to assume pension and health care obligations of thousands of Delphi employees represented by the United Auto Workers union should the supplier be unable to do so.